Hiring in the United States gives you access to one of the world's most dynamic talent pools. An Employer of Record (EOR) provider streamlines your hiring process in the United States by offering tailored solutions. Navigating the United States' complex federal, state, and local employment laws is a major challenge for global businesses. Without an established entity, you face significant costs, risks, and delays that slow your global expansion.

G-P’s global employment platform simplifies U.S. hiring. Our EOR USA platform enables access to the best American talent, simplifying the hiring process. Our market-leading G-P EOR product lets you onboard talent across all 50 states in minutes—no local entity required. We manage the complexities of payroll, benefits, and ongoing compliance with expertise you can trust. Our AI-powered services allow you to secure top U.S. talent quickly and compliantly, while we handle the administrative tasks and responsibilities.

How to hire in the USA with an EOR

Hiring in the U.S. with an employer of record like G-P simplifies the entire process for international companies. Instead of establishing your own legal entity, which can be costly and time-consuming, an EOR acts as the legal employer for your team members. This allows you to quickly and compliantly onboard talent across all 50 states.

The EOR manages critical HR functions, including:

By partnering with an EOR, you retain responsibility for the day-to-day management of your team, while the EOR handles the administrative tasks, legal complexities, and compliance risks associated with U.S. employment. This streamlined approach allows you to focus on your core business growth.

Hiring across state lines with employer of record products and services

Hiring talent across the United States means navigating state and local labor laws. Each state has its own rules for minimum wage, overtime, paid leave, and benefits. This complexity can create significant administrative burdens and compliance risks if you don't have local expertise.

As your Employer of Record, G-P acts as the legal employer for your team members, managing this complexity for you. Our industry-leading global employment platform and in-house team of U.S. legal and HR experts ensure you remain compliant in every state you hire in. This lets you build your team anywhere in the U.S. without the cost and risk of setting up your own legal entities. We handle employment contracts, payroll, and state-specific tax laws, so you can focus on growing your business.

Partnering with an EOR in the USA

While G-P helps you with  payroll, tax, and benefits compliance, it's important to understand the shared nature of employment responsibilities.

U.S. employment contracts and at-will status

In the United States, employment is largely presumed to be 'at-will' in every state except Montana. This means either the employer or the employee can terminate the employment relationship at any time, for any reason, as long as the reason is not illegal. Illegal reasons for termination include discrimination based on protected characteristics like race, gender, age, religion, or disability, as defined by Equal Employment Opportunity (EEO) laws.

A formal, written employment contract can alter the at-will relationship. Using an EOR like G-P ensures that a compliant, enforceable employment agreement is put in place. This agreement will clearly outline the terms of employment, including compensation, responsibilities, and termination conditions, protecting your business from the risks associated with vague oral or implied contracts.

Managing U.S. work hours and overtime compliance

The standard U.S. workweek typically consists of 40 hours, with specific regulations for overtime. Under the federal Fair Labor Standards Act (FLSA), employees must be classified as either 'exempt' or 'non-exempt' from overtime pay. Non-exempt employees are entitled to overtime pay, typically 1.5 times their regular hourly rate, for any hours worked beyond 40 in a workweek. Exempt employees, often those in salaried executive, administrative, or professional roles, are not eligible for overtime.

Misclassifying employees is a significant compliance risk, potentially leading to audits and penalties for employers. G-P manages this complexity by ensuring each employee is correctly classified according to federal and state law, safeguarding your company from liability.

USA public holidays

The U.S. has 11 official federal holidays. While private employers are not legally required to provide these as paid days off, it is a strong market norm to do so to remain competitive. An EOR can advise on typical holiday practices in your specific industry and location.

Navigating U.S. leave policies

Leave entitlements in the U.S. are a mix of federal, state, and even city-level regulations. At the federal level, the Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid, job-protected leave for specific family and medical reasons for eligible employees at companies with 50 or more employees.

However, there is no federal mandate for paid sick leave or vacation time. Instead, a growing number of states and municipalities have enacted their own laws requiring paid sick leave and, in some cases, paid family and medical leave (PFML). These laws have varying accrual rates, eligibility requirements, and reasons for use. An EOR like G-P stays current on all applicable leave laws, ensuring your employees receive the correct entitlements, no matter where they are located.

Health insurance and employee benefits

Offering competitive benefits is crucial for attracting and retaining top talent in the U.S. Under the Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees that do not offer affordable, minimum-value health insurance may be subject to penalties. Navigating the U.S. healthcare market is notoriously complex and costly for new entrants.

Maternity/paternity leave in the U.S.

When a person gives birth or adds a child to their family, they are allowed to take up to 12 weeks of unpaid time off, under the FMLA, provided the employer has at least 50 employees within 75 miles and provided the employee has worked at least 1,250 hours over the past 12 months.

The U.S. is one of the only countries in the world that does not require paid parental leave. Although paid time off for maternity or paternity leave is not legally required at the federal level in the U.S., a few states do mandate paid parental leave. Additionally, some companies offer it as a way to be competitive and foster a workplace that’s desirable to talent.

U.S. supplementary benefits

An employer might offer additional employee benefits that are not required by law in the U.S. Some common supplemental benefits an employer might make available are:

Bonuses

In the U.S., bonuses are not required by law. Bonuses are payments employers make to employees in addition to their normal earnings to incentivize them to achieve certain outcomes or accomplish specific goals. An employer might reward an employee for going above and beyond with their work or for succeeding during a particularly challenging situation. Companies also often offer their team members bonuses at the end of the year or during the winter holidays. These bonuses might be based on the employee’s overall performance during the year or on how well the company itself has performed.

An EOR eliminates this burden. G-P provides access to high-quality, ACA-compliant health insurance plans and other supplementary benefits, such as dental, vision, and retirement plans like a 401(k). This allows your company to offer a competitive benefits package from day one, without the administrative overhead.

Compliant termination and severance

While the at-will doctrine provides flexibility, terminating an employee in the U.S. still carries risks, including potential claims of wrongful termination. Furthermore, states have specific rules regarding the timing and contents of the final paycheck. Severance pay is not federally mandated but is often offered in exchange for a release of claims.

G-P manages the termination process in full compliance with all applicable federal and state laws, including administering final pay and managing COBRA health insurance continuation. This ensures a smooth, compliant offboarding process and minimizes legal exposure for your company.

U.S. payroll and tax withholding

U.S. employers are legally required to manage complex payroll deductions and tax contributions. This includes withholding federal, state, and sometimes local income taxes from employee paychecks.

Additionally, employers must withhold and contribute to federal social insurance programs:

Employers are also responsible for paying Federal Unemployment Tax (FUTA) and State Unemployment Tax (SUTA). G-P's AI-powered EOR service handles all aspects of U.S. payroll, including calculating wages, withholding the correct taxes, and remitting all payments to the appropriate authorities, guaranteeing accuracy and compliance.

How to select the right employer of record partner in United States

Choosing the right USA employer of record partner is key to your success in the USA. A strong partner helps you navigate the country’s unique labor market. This allows you to hire talent and grow your business with speed and full compliance.

Consider these factors when choosing a United States EOR:

  • Reputation and industry leadership: Research the EOR's reputation in the market. G-P is the recognized leader in global employment and is ranked No. 1 in every industry analyst report. Customer testimonials and case studies are also important when choosing an EOR.

Why G-P EOR?

G-P EOR is the award-winning, AI-powered SaaS platform that empowers ambitious companies to build global teams. Onboard, manage, and pay top talent in over 180 countries in minutes, bypassing the typical time, cost, and complexity of local entity setup. G-P EOR is the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while guaranteeing consistent and accurate data across your integrated systems.

Contact us today to learn more.